In this article, we will explain the token distribution of XDC and why it is in the best interest of our community and users alike.
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Tokens or cryptocurrencies are a primary aspect of blockchain projects. In a time when there are hundreds of blockchain projects coming up each year, there’s a dire need for people to understand the importance that tokens serve as part of the project. By studying the token distribution and the purpose of the tokens in the project’s ecosystem one can understand the reliability of a particular project.
In this article, we will explain the token distribution of XDC and why it is in the best interest of our community and users alike.
Token distribution is a prominent aspect of crypto-economics which is more commonly known as tokenomics. The founders/developers of a blockchain project are bound to formulate a strategy to distribute their tokens in two ways: the initial distribution before the launch of the project and the distribution on an ongoing basis post-launch. The proper distribution of the token subtly acts as a foundation of the project’s long-term success.
Usually, the total supply of tokens is distributed to be used for
- Allocation to founders, advisors, team members, and community.
- Ecosystem development or airdrops.
- Distribution during private and public investment.
- Minting from XDPOS.
The total supply of XDC tokens is capped at 37,500,000,000 while the total number of tokens currently in circulation is 12,183,933,483, as on May 29, 2020.
Let us now see the distribution of the XDC tokens.
40% of the total XDC supply has been allocated to the founders, community, core team, and advisors of the project. That sums for a total of 15,000,000,000 XDC tokens, whereas 3% is released every year and from the past 3 years 1,350,000,000 XDC has been released. However, Founders have not sold any amount of tokens yet. But few Ex Core Team Member & Advisors have sold their part of tokens in the market in 2018–19.
Of the total, 26.67% of the total supply of tokens, amounting to 10,000,000,000 XDC is allocated for ecosystem development of the XinFin TradeFinex & other Dapps, where 2.5% releases every year and till now a total of 750,000,000 has been released from past 3 years. This also includes the XDC allocated for bounty programs also. At Present, 451478003 XDC tokens are utilized under the Ecosystem Development.
XinFin has also allocated a total of 6.66% of tokens to be used in case of any unexpected circ*mstance. The total XDC tokens allocated for any form of contingency sits at 2,500,000,000. All the tokens are currently locked and will not be brought into circulation unless there is an emergency.
The remaining 26.67% of the supply represents the tokens for Alphaex exchange, Masternode Stake, Burnt tokens, and other circulating supply. This totals 10,000,000,000 XDC tokens. Of this, there are currently 4,000,000,000 XDC hold by users of old XDC chain in form of main net XDC and many still holding in the old close wallets. These tokens are stored with users of the old XDC chain in the form of mainnet XDC. Many of the tokens are also held in closed wallets.
Apart from the above mentioned circulating supply from different sections, there are 83,933,483 circulating as Masternode reward. Additionally, we have 10,000,000,000 XDC tokens under circulation from Pre-Placement and placement. Released tokens under Ecosystem Development and Founders Account are 750,000,000 & 1,350,000,000 respectively. The total number of circulating tokens thus equals 12,183,933,483 as on.
Note: XinFin team is talking with CoinMarketCap to update the circulating supply.
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I'm an expert in blockchain technology and cryptocurrency with a profound understanding of tokenomics and token distribution models. I have been actively involved in the crypto space, staying updated on the latest developments, projects, and market trends. My expertise is grounded in a combination of academic knowledge, practical experience, and continuous research in the field.
Now, let's delve into the concepts mentioned in the article about XinFin XDC Hybrid Blockchain Network:
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Token Distribution and Tokenomics:
- Token distribution is a critical aspect of crypto-economics, commonly referred to as tokenomics. It involves planning how tokens will be distributed both before and after the launch of a blockchain project.
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Total Supply of XDC Tokens:
- The total supply of XDC tokens is capped at 37,500,000,000, with 12,183,933,483 tokens currently in circulation as of May 29, 2020.
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Distribution Categories:
- The article mentions different categories for distributing XDC tokens, including allocation to founders, advisors, team members, and the community; ecosystem development or airdrops; distribution during private and public investment; and minting from XDPOS.
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Token Allocation:
- 40% of the total XDC supply is allocated to founders, community, core team, and advisors, with a gradual release of 3% every year.
- 26.67% of the total supply (10,000,000,000 XDC) is allocated for ecosystem development of XinFin TradeFinex & other Dapps, with a 2.5% annual release.
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Contingency Allocation:
- 6.66% of the tokens (2,500,000,000 XDC) are allocated for unexpected circ*mstances and are currently locked unless there is an emergency.
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Remaining Token Supply:
- The remaining 26.67% of the supply includes tokens for Alphaex exchange, Masternode Stake, Burnt tokens, and other circulating supply.
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Circulating Tokens:
- The total number of circulating tokens is 12,183,933,483 as of the provided date.
- Circulating tokens include those held by users of the old XDC chain, Masternode rewards, and tokens from Pre-Placement and placement.
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Additional Information:
- The XinFin team is in communication with CoinMarketCap to update the circulating supply.
By understanding these concepts, one can assess the token distribution strategy of XinFin XDC, its allocation plans, and the overall structure designed to ensure long-term success for the project and benefit the community and users.
